Company Number: 13799280

Analysis Date: 2025-07-29 19:36 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks as indicated by persistent negative net assets, increasing long-term liabilities, and negative working capital. The absence of an income statement and the fact that it is a micro-entity limited by guarantee with no share capital further constrain financial flexibility.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities have deteriorated from -£77,705 in 2022 to -£172,965 in 2023, indicating worsening solvency.
• Negative Net Current Assets (Working Capital Deficit): Current liabilities exceed current assets by £166,433 in 2023, suggesting potential liquidity issues to meet short-term obligations.
• Significant Long-Term Creditors: Creditors due after more than one year increased from £232,739 to £294,596, indicating sizeable long-term obligations that may pressure cash flow.

3. Positive Indicators:

• Timely Filing and Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
• Experienced Management Team: Presence of multiple directors with significant influence and relevant professional backgrounds may support operational stability.
• Fixed Asset Growth: Increase in fixed assets from £194,298 to £288,064 may suggest investment in infrastructure or capital expenditure supportive of future operations.

4. Due Diligence Notes:

• Review Cash Flow and Income Data: The accounts lack income and expenditure information. Obtain management accounts or audited financials to assess profitability and cash flow sufficiency.
• Assess Nature and Terms of Long-Term Creditors: Clarify creditor composition and repayment schedules to evaluate refinancing or default risks.
• Understand Business Model and Revenue Streams: Given the company is limited by guarantee and in IT/telecom sector, ascertain how it generates sustainable income and manages operational costs.
• Investigate Director Turnover and Governance: Several director changes in a short period warrant enquiry into governance stability and any impact on strategic direction.